Albemarle (ALB) closed the most recent trading day at $223.33, moving +0.5% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.5%.
Heading into today, shares of the specialty chemicals company had lost 1.81% over the past month, outpacing the Basic Materials sector's loss of 2.94% and the S&P 500's loss of 6.69% in that time.
Albemarle will be looking to display strength as it nears its next earnings release. On that day, Albemarle is projected to report earnings of $2.79 per share, which would represent year-over-year growth of 213.48%. Meanwhile, our latest consensus estimate is calling for revenue of $1.28 billion, up 65.39% from the prior-year quarter.
ALB's full-year Zacks Consensus Estimates are calling for earnings of $13.40 per share and revenue of $6.07 billion. These results would represent year-over-year changes of +231.68% and +82.31%, respectively.
Investors might also notice recent changes to analyst estimates for Albemarle. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 20.61% higher within the past month. Albemarle is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Albemarle is holding a Forward P/E ratio of 16.58. Its industry sports an average Forward P/E of 9.98, so we one might conclude that Albemarle is trading at a premium comparatively.
We can also see that ALB currently has a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Chemical - Diversified was holding an average PEG ratio of 0.85 at yesterday's closing price.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.